Coinbase Introduces New Digital Asset Lending Platform for Institutional Investors
Coinbase has recently unveiled its new digital asset lending platform in the US, catering specifically to large institutional investors. The platform has already raised an impressive $57 million, as disclosed in a regulatory filing. This development fills a significant void left by the bankruptcy of Genesis and BlockFi, two prominent crypto lending services. Genesis had accumulated over $3.5 billion in debt, while BlockFi filed for Chapter 11 bankruptcy after facing issues with FTX exchange.
With Coinbase’s new service, clients can loan money to the platform and receive collateral exceeding the loan amount. These funds will be used by Coinbase to provide secure loans to institutional trading clients. The service operates under standardized terms that meet the requirements of a Regulation D exemption. Coinbase’s ultimate goal is to update and modernize the financial system, leveraging the potential of cryptocurrency to offer greater economic freedom and opportunities to individuals.
Base, Coinbase’s Layer-2 Ethereum Network, Faces Temporary Outage
In the midst of the positive news surrounding Coinbase’s crypto lending service, its recently launched Layer-2 Ethereum network, known as “Base,” experienced a 30-minute outage. The network assured its users that their funds were not at risk, although it took an additional half an hour to fully resolve the issue. Base’s development team attributed the delay in block production to the need for a system refresh, but they swiftly identified and remedied the problem.
Base was introduced by Coinbase in February as a low-cost, secure, and developer-friendly environment aimed at attracting more users to the digital asset space. The Layer-2 network became available to the public on August 9, following the release of its Ethereum bridge and platform opening for builders on July 13.
Hot Take: Coinbase’s Lending Platform Fills a Crucial Gap in the Crypto Market
Coinbase’s new digital asset lending platform is a significant step towards addressing the needs of large institutional investors in the crypto market. With the bankruptcy of Genesis and BlockFi, there was a clear void that needed to be filled. Coinbase’s solution not only provides a secure lending service but also helps advance the financial system by leveraging the power of cryptocurrency. This move aligns with Coinbase’s mission to bring economic freedom and opportunities to a billion people through their trusted crypto products and services.
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